Community banks’ and credit unions’ opportunity to acquire new accountholders grows as the number of dissatisfied accountholders increases at big banks. Although advertising budgets at big banks exceed those of smaller financial institutions, community banks and credit unions can win market share by focusing on maintaining reduced fees, building stronger relationships and providing valuable services for which accountholders are searching.
Tags: cash back reward programs, Increasing Market Share and Profitability, Reward Programs, Customer Acquisition and Retention Strategies, Pinnacle Financial Strategies, Debit Card Programs, accountholder acquisition
Most financial institutions across the country offer debit cards to accountholders; however, many financial institutions fail to realize the full benefits a successful debit card program can deliver in new accountholder acquisition, current accountholder retention and overall profitability. A successful debit card program begins with a simple, valuable reward program, which promotes increased usage and is promoted to the right target demographic.
What do accountholders really want in terms of rewards programs? Two things: cash and customer service. According to the Q4 National Banking Opinion Poll, 61% of Americans stated they would switch to a new institution if it provided them with a cash back rewards program. But what good are those programs if an institution can’t back them up with the kind of customer service that gives accountholders peace of mind when opening a rewards checking account?
Take off your banking hat for a moment and think as a consumer about reward programs. What types of rewards programs do you participate in? Why do you participate in them? Is it because you value and appreciate the rewards? Or do you just want to support a company that appreciates and values your business?